What is a P11D Form and Who Needs to File It?

P11D is a detailed form issued by HMRC to account for an employer’s expense with respect to benefits and expenses offered to his/her employees. The scope of form includes recording employer’s expenses like bonus, medical coverage, fuel cost, etc. made on behalf of employees with no provision for reimbursement. Coverage of information such as identification of employee, date of birth, etc., are also captured in this form.

Inclusions in P11D:

The P11D form has a total of 14 sections, segregated into numerous aspects of allowable expense within the purview of the form. The list includes:

• Private Health Insurance
• Work-related training
• Assets that are being offered to employees at free of cost
• Credit card bills
• Vouchers
• Accommodation
• Travel expenses which are non-business in nature

The amount mentioned by the employer in the P11D form should be equal to the total expense incurred by the company on behalf of that particular employer. If there is inconsistency, then it will attract penalties from the HMRC.

Submission Deadline

The P11D form should be submitted by the employer by 6th July post tax year. Computed dues should be paid by 22nd July to the HMRC. Cases where no benefits have been extended towards the employees, the company should file a nil return or Class 1A form with no return. This will suggest that the company has derived no gains from extending employee benefits.

Penalty & Charges for P11D

There are various ways through which penalty can be imposed:

• Deadline missed – 6th July, if yes, then there are 2 weeks do it
• Incorrect information

For missed deadline, the department will impose £100/month every 50 employees. In case of incorrect information, HMRC will decide the penalty amount which can range from 30% to 100% of the due tax, based on the situation and its evidence.

Applicability

P11D form needs to be filed by the employer only. It is also applicable in cases of freelancers, corporate clients and contractors.

The employer has to be file separate P11D form for each employee who earns £8,500 or more. This is also applicable for part-time directors who have no real interest in the given company’s operation.

There are two modes to file P11D – Online and offline.

In case you have queries or wish to seek professional assistance from P11D, get in touch with us for a free consultation – 03301331114 / [email protected]